SMY

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Sally Malay Mining Limited is engaged in exploration, evaluation, development and production of mineral deposits. The Company operates the Sally Malay nickel, copper & cobalt project in the East Kimberley, and is the 75% owner and operator of the Lanfranchi nickel mine near Kambalda. Both operations are in western Australia. During the fiscal year end June 30, 2006 (fiscal 2006), the Sally Malay project produced 7,490 tones of nickel in concentrate together with 3,740 tones of copper and 410 tones of cobalt. In fiscal 2006, Lanfranchi mine produced 107,130 tones of ore grading 2.15% nickel containing 2,688 tones of nickel. The Company has a 75% interest in the Lanfranchi Joint Venture, which is involved with the exploration, evaluation, development and production of mineral deposits in the Kambalda region of western Australia.

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